Home Rehabilitation Program

How it works

The City of Altoona administers the Home Rehabilitation Program through its Community Development Department. The page says the owner signs a borrower’s agreement, construction contracts, and loan documents at closing. The program is described as a deferred grant/loan structure that is forgiven after the property meets the required terms over the mortgage period.

What the money covers

The page says assistance is for home rehabilitation needs and emergency repairs. City planning text tied to the program states it can cover:

• Up to $5,000 to correct exterior code violations, excluding mowing.
• Up to $20,000 for emergency repairs to heating, plumbing, and electrical system failures.
• Other repairs determined by city inspectors to pose an immediate threat to health and safety.

What is not covered

The planning documents say new construction, routine maintenance, and full rehabilitation projects are not eligible. The page also says demolition work, including garages and additions, is referred elsewhere.

Amounts and matching

The page excerpt available here does not provide a matching requirement. It describes the city’s share as a no-interest, deferred forgivable loan amortized over four years in the planning documents, while the program page says the deferred grant is forgiven five years after project completion if the property remains in compliance.

How to apply

Applications are available upon request. The page says a completed application includes:

• An executed and notarized application.
• All required documentation.
• A $450 per unit non-refundable application deposit check, payable to the City of Altoona, required before property inspection.

The owner/contractor bid must be within 10% of the Rehabilitation Specialist’s cost estimate. After the bid is accepted, loan closing is scheduled and the city portion is calculated from the bid.

Timing and deadlines

Applications are processed first-come, first-served. The program page does not state a public application deadline. The forgiveness period is five years after the project completion date, as determined by HUD, if the owner complies with the program terms.

Additional program terms

• Both the owner’s and the city’s funds are placed in an escrow account.
• Payments are made after sign-off by both the property owner and the Rehabilitation Specialist.
• Final inspection is completed by City Code Officials, the Rehabilitation Specialist, and the property owner.
• The owner is responsible for closing costs and legal costs associated with mortgage satisfaction.
• The owner or a representative must have RRP Certification (Lead Renovators Certification) for lead-based paint requirements.
• A radon test is performed and radon must be remediated if it exceeds the minimum level.